Abstract: Frequent flyer programmes (FFPs) are ubiquitous marketing tools used by airlines all over the world. Many airline passengers are members of FFPs, and most of them probably perceive FFPs as something positive.This article examines the status of FFPs under EU competition law. More precisely, the article analyses the FFPs of dominant airlines under the law on loyalty rebates in implementation of Article 82 of the EC Treaty. Five particular characteristics of FFPs are closely scrutinized: the duration of the reference period, the retrospective nature, the multiplicity of reward levels, their character as bundled rebates and the particular efficiencies which FFPs can create. The conclusion of this analysis is that the FFPs’ characteristics may conflict with the current law, to various degrees. Based on this finding, the article advances a number of propositions on how the law on rebates could be improved. Finally, the article goes beyond the law on rebates, and examines the effects on competition of a particular feature of FFPs – the so-called principal-agent relationship.

by William S. Comanor* and Takahiro Miyao° I. Since its inception as an independent discipline, economics has probed the major policy issues of the day. The questions that aroused its practitioners were those that presented society with critical choices. So it is today with our recognition of the growing divide between rich and poor. For a generation, ec […]

According to the mainstream explanation of the origin of the Sherman Act, in 1890 the US Congress was persuaded by farmers and other small businesses about the dangers posed by big trusts (especially railroad monopolies) and enacted the first national antitrust law to curtail their market power. However, Stigler (1985) argued that there was modest proof of s […]

Introduction The question posed above lies at the heart of many antitrust decisions. Since these actions, particularly when opposed, often take long periods of time before resolution, any remedies imposed will become operative only in the future. On this account, it is tempting to consider future market conditions before making enforcement decisions. The pro […]

Adi Ayal, Bar Ilan University and Yaad Rotem, College of Law and Business, Ramat-Gan, Israel offer Anticompetitive Patents: An Incorporation Solution. ABSTRACT: Patent protection is both a blessing and a curse. Allowing for investment and innovation, patents also allow anti-competitive...

Donald I. Baker, Baker & Miller, PLLC has posted his prepared remarks from the AAI American Antitrust Institute Annual Conference, which honored him for his lifetime achievements in the field - ANTITRUST ENFORCEMENT: FROM SUNLIGHT TO SHADOWS?

one main goal of financial engineering is to take value from people who aren't in the room, and the IRS (Hacienda) is so rarely in the room. If you've got a smallish private company and you want to give it a low value for tax purposes, I mean, sure, who am I to stop you? But it's important to make sure that you're not accidentally taking […]

Wall Street "short-termism" is just about who should get to make decisions with capital. If you are bad at investing capital, investors will keep you on a short leash, and ask for their capital back if you have any to spare so they can put it to better uses. If you are great at investing capital, sure, buy a virtual-reality headset company, build d […]

Baker & McKenzieBaker & McKenzie It is never a good sign when an advocate general’s opinion warns the European Court of Justice (ECJ) not to be swayed by “ephemeral trends” or the “Zeitgeist” of economic analysis, but instead to stick to the … Continue reading →• Leave a comment on Advocate general deals another blow to economic assessment of rebates […]

Hogan Lovells, BelgiumHogan Lovells, Belgium On 9 July 2015, the Court of Justice of the European Union (“ECJ”) issued an important judgment1 concerning the basis on which cartel fines by the European Commission should be calculated for vertically integrated companies. The judgment … Continue reading →• Leave a comment on EU judgment confirms potential of hi […]

Wolters Kluwer Law & BusinessWolters Kluwer Law & Business The federal district court in Boston has rejected a request from purchasers of AstraZeneca LP’s heartburn medication Nexium for a new trial to challenge a “reverse payment” or “pay-for-delay” agreement between AstraZeneca and Ranbaxy Pharmaceuticals to block … Continue reading →• Leave a comm […]

Hogan LovellsHogan Lovells On 9 July 2015, the Court of Justice of the European Union (“ECJ”) issued an important judgment[1] concerning the basis on which cartel fines by the European Commission should be calculated for vertically integrated companies. The judgment endorses … Continue reading →• Leave a comment on EU Judgment Confirms Potential of High Cart […]

Wolters Kluwer Law & BusinessWolters Kluwer Law & Business UPDATE: The bi-partisan “Criminal Antitrust Anti-Retaliation Act of 2015” passed the Senate by unanimous consent on July 22. A bill is advancing through the U.S. Senate that would protect employees who report suspected criminal antitrust … Continue reading →• Leave a comment on Antitrust Whis […]

July 6, 2015 Last week the Canadian federal government announced a new and less strict Integrity Regime for suppliers doing business with federal government departments and agencies. Public Works and Government Services Canada (PWGSC) initially introduced an Integrity Framework in 2012. The changes announced on July 3, 2015, which are the result of significa […]

July 5, 2015 I currently have no dog in the ongoing local (and growing global) cab and ride-sharing application competition fight. I don’t act for any taxi company or ride-sharing firm. I do, however, as a competition lawyer and citizen, strongly support competition and undistorted markets. It remains clear to me that Canadian consumers benefit […]

June 18, 2015 On June 3, 2015, the Canadian Competition Bureau (Bureau) finalized its new core competition law compliance materials. They are essential reading for corporate compliance officers, senior management and in-house counsel. In announcing its new Corporate Compliance Programs Bulletin, the Commissioner of Competition said: “This bulletin seeks to h […]

By Francisco Beneke* As announced last week, the data for the Latin-South American countries is presented in part II. The criteria for setting a starting date of modern competition policy is transcribed from the last post: “The starting date is counted from when a competition authority started to exist, who is in charge of enforcing […]

By Francisco Beneke* Competition policy, as we now know it, is a relatively recent phenomenon in some Latin American countries, not so new in others, and non-existent in an ever smaller group. The issue of antiquity is illustrative of the context in which enforcement authorities and the courts interact with each other. It can affect […]

By Amine Mansour* In a paper published in 2013, M. Connor asks if the Auto Parts market is evolving into a supercartel. Since then, the industry has witnessed several developments (at the global stage). The most important ones occurred in the BRICS. In this regard, the South African Competition Commission has launched investigations in the […]